Hero Motors IPO
Market Sentiment
IPO Details
IPO Reservation
Financial Analysis
| Metric | 2022 | 2023 | 2024 | December 2024 |
|---|---|---|---|---|
| Revenue | 921.15 | 1,070.00 | 1,083.42 | 823.80 |
| Expense | 849.25 | 1,016.24 | 1,059.11 | 799.28 |
| Profit (PAT) | 99.02 | 40.51 | 17.04 | 22.39 |
| Total Assets | 703.13 | 992.02 | 1,059.86 | 1,177.79 |
| Company | P/E | EPS | Market Cap (Cr) |
|---|---|---|---|
| CIE Automotive India Limited | 21.14 | 21.03 | 16 |
| Endurance Technologies Limited | 54.37 | 48.38 | 14 |
| Sona BLW Precision Forgings Limited | 54.44 | 8.83 | 20 |
| UNO Minda Limited | 70.44 | 15.36 | 20 |
| Varroc Engineering Limited | 16.20 | 34.43 | 58 |
Promoters: Pankaj Munjal, Charu Munjal, Abhishek Munjal and O P Munjal Holdings
| Shareholding | No. of Shares | Holding % |
|---|---|---|
| Promoter Holding Pre Issue | 35,83,36,019 | 91.41% |
Company Information
Hero Motors Limited is one of the leading companies in the case of design, development, and supply of advanced powertrain solutions to OEMs in the US, Europe, India, and ASEAN. The company offers a variety of products used in different types of vehicles, such as two-wheelers, e-bikes, high-performance cars, off-road vehicles, electric and hybrid cars, heavy-duty vehicles, and eVTOL aircraft. The company is blessed with various products, as its products are deployed in various things such as bikes, e-bikes, cars, off-road and heavy vehicles, electric and hybrid models, and flying vehicles like eVTOLs. Hero Motor Limited has two main business areas: Powertrain Solutions, systems that help vehicles move by turning energy into motion. Alloys and Metallics, which are Special materials used in electric, fuel-based, and hybrid vehicles, are suitable for all types of powertrains.
| Purpose | Amount (Cr) |
|---|---|
| Repayment/prepayment/redemption, in full or in part, of certain outstanding borrowings availed by our Company | 285.00 |
| Capital expenditure of our Company through purchase of equipment for expansion in capacity of our Gautam Buddha Nagar, Uttar Pradesh facility | 237.00 |
| Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes | - |
Resources & Documents
Hero Motors Ltd., Hero Nagar,, GT Road,, Ludhiana, Ludhiana, Punjab, 141003
Hero Motors is preparing a sme offering for an issue size of Rs 1,200 crore. The SME issue is in the upcoming pipeline with dates yet to be finalised.
Hero Motors Limited is one of the leading companies in the case of design, development, and supply of advanced powertrain solutions to OEMs in the US, Europe, India, and ASEAN. The company offers a variety of products used in different types of vehicles, such as two-wheelers, e-bikes, high-performance cars, off-road vehicles, electric and hybrid cars, heavy-duty vehicles, and eVTOL aircraft.
The issue is promoted by Pankaj Munjal, Charu Munjal, Abhishek Munjal and O P Munjal Holdings with ICICI Securities Limited, Dam Capital Advisors Ltd, Jm Financial Limited acting as lead manager. Net proceeds will primarily be used towards Repayment/prepayment/redemption, in full or in part, of certain outstanding borrowings availed by our Company (Rs 285 crore) and Capital expenditure of our Company through purchase of equipment for expansion in capacity of our Gautam Buddha Nagar, U… (Rs 237 crore).
On fundamentals, the company is posting revenue growth of 1.3%, a profit margin of 1.6%, return on equity of 4.5% in its most recent reported period. Listed peers in this segment include Varroc Engineering Limited (P/E 16.20x, market cap Rs 58 crore) and Sona BLW Precision Forgings Limited (P/E 54.44x, market cap Rs 20 crore) — useful reference points when evaluating the issue's pricing relative to where the broader sector are trading.
All figures below — GMP history, subscription tiers, financials and peers — are aggregated from public disclosures. Always apply through your own broker after reading the RHP.
Understanding Grey Market Premium (GMP)
The Grey Market Premium (GMP) is an unofficial indicator of how an IPO's shares are trading in the grey market before they are officially listed on a stock exchange. It reflects investor sentiment and demand for the IPO shares ahead of listing day.
How does it work? The grey market is an informal, over-the-counter market where investors buy and sell IPO shares before the official listing date. If an IPO has a positive GMP, it suggests that investors expect the stock to list above its issue price. A negative GMP indicates expectations of a listing below the issue price.
Example: If an IPO has an issue price of ₹100 and the GMP is ₹50, the expected listing price would be approximately ₹150 (issue price + GMP). This translates to an estimated listing gain of 50%.
Factors that influence GMP:
- Subscription levels — Higher subscription typically drives GMP up
- Market conditions — Bullish markets tend to boost GMP across all IPOs
- Company fundamentals — Strong financials and growth potential attract premium
- Industry sentiment — Positive outlook for the sector can increase demand
- IPO pricing — Reasonably priced IPOs relative to peers tend to command higher GMP
Disclaimer: GMP is an unofficial metric from the grey market and is not regulated by SEBI or any stock exchange. GMP values fluctuate frequently and should not be the sole basis for investment decisions. Always consider company fundamentals, financial health, and your own risk appetite before investing in any IPO.
Related IPO
No comments yet. Be the first to share your opinion!